Bitwise plans to shift three of its bitcoin and ethereum futures ETFs from their current long strategies to strategies that alternate between cryptocurrencies and US Treasuries, according to an Oct. 4 report. statement.
The company's crypto futures ETFs, including the Bitwise bitcoin Strategy Optimum Roll ETF (BITC), the Bitwise ethereum Strategy ETF (AETH), and the Bitwise bitcoin and Ether Equal Weight Strategy ETF (BTOP), will be renamed Bitwise Trendwise bitcoin and Treasuries Rotation Strategy ETF (BITC), Bitwise Trendwise ethereum and Treasuries Rotation Strategy ETF (AETH), and Bitwise Trendwise btc/eth and Treasuries Rotation Strategy ETF (BTOP), respectively.
The fund manager expects the adjustment to occur on December 3.
Notably, this move comes during the same week that the asset manager applied to the US Securities and Exchange Commission (SEC) for a spot XRP ETF.
Bit by Bit Trend ETF
According to the statement, these ETFs will adjust their exposure to cryptocurrencies or US Treasuries, depending on market conditions. During positive market trends, they will focus on cryptocurrency investments, while during downturns, they will shift towards US Treasuries.
Bitwise explained that the Trendwise strategy improves risk-adjusted returns by taking advantage of market momentum while also offering protection during bearish conditions. The strategy is based on a proprietary signal that monitors the 10-day and 20-day exponential moving averages (EMA) of cryptocurrency prices.
So when the 10-day EMA surpasses the 20-day EMA, indicating bullish momentum, the funds will invest in cryptocurrencies. If the situation reverses, funds will rotate into US Treasuries.
Bitwise CIO Matt Hougan explained that this strategy reflects broader trends in asset management. He stated:
“The new Trendwise strategies capitalize on that momentum through a trend-following strategy that rotates between exposure to cryptocurrencies and Treasuries depending on market direction. The goal is to help minimize downside volatility and potentially improve risk-adjusted returns.”
Meanwhile, bitcoin market analyst Joe Consorti praised the development. x.com/JoeConsorti/status/1842217761558151192″>indicating:
“This is great news for bitcoin as a macro asset. US Treasury bonds are the preferred asset of all financial institutions in the world. Adding bitcoin to a rotating investment vehicle will increase UST returns and be an attractive diversifier for UST-heavy balance sheets.”
These changes will not affect the funds' expense ratios or tax treatment, so existing investors will not need to take any action.
